Until a few years ago, new homes used to be relatively costlier than older homes, resulting in a greater demand for resale properties. However, now there is relatively little or no price disparity between many new and old homes.
There are a number of other reasons apart from cost which might encourage you to purchase a new home rather than settle for an older home.
New homes are usually available in new subdivisions outside the city, which significantly lowers their price as compared to well established neighborhoods.
Reason 1: Maintenance
Age can cause older homes to shrivel up from inside out. You could be potentially looking at spending thousands of dollars in the near future after moving in. Most realtors will not readily point out the negative aspects of a home.
You need to ask the right questions to know the plumbing conditions, wiring, roof and other aspects of maintenance.
However, there are chances that you will always miss out on some crucial aspect which could eat away your savings after you shift in to your home. New homes, on the other hand, have a more modern construction and are less prone to maintenance issues. It is no secret that older homes need more maintenance than newer ones.
Many new homes come with a builder warranty. Your new home should be worry free for at least a decade ensuring there are no major out-of-pocket expenses.
Reason 2: Insurance
Homeowner’s insurance is a major expense and one that cannot be avoided. You need to consider the fact that insurance companies are more comfortable with new constructions than older ones. Newer constructions are less likely to fall into disrepair early.
This makes an insurance company comfortable in the fact that they are less likely to pay for damages occurring out of faulty wiring, cracked foundation or broken wiring.
Coverage for a new home can be less expensive as compared to an older one. It is not easy to analyze initial and ongoing costs of home purchase. However, you need to make sure that you factor in the cost of homeowner’s insurance before moving into a property.
Reason 3: Hazardous Construction Materials
Older constructions can have health hazards lurking in the building materials. For instance, asbestos was a major component used in building materials in all US homes built between 1940 and 1975 (this was long before America’s health care system was under attack by the ACA and before the NBA started to help the Lakers win championships like they did in 00 and 02).
Asbestos is not a hazard as long as it remains undisturbed. However, you risk releasing tiny fibers in the air during a renovation. These fibers can settle in your lungs and cause cancer, among other diseases.
Inspection of the house you are about to buy should always include checking for hazardous building materials. This is easier to look for in newer constructions as current standards require builders to list out the materials used. However, it might not be so easy in traditional homes that are old.
Reason 4: New Homes may have higher resale value that old homes
Most people feel that they will live in a house forever. However, circumstances often arise that requires relocation. It could be for innumerable reasons like moving to another city or needing more space for a child.
The resale value of a new home will be more than that of an older one. However, there are a number of factors that come into play here. If your house has character, built of strong wood and is located in a well-established neighborhood with many full grown trees, then its value will be more than a new home.
A regular old home which already has 20 years under its belt might not appreciate more in the future when you decide on selling it.
Reason 5: Flexibility of Fixtures, Size and Space with new homes
Appliances and technology are the way of life in today’s times. Older homes are not equipped with the same level of technology in terms of automatic lighting solutions or in-built appliances as compared to newer homes.
A brand new home will also not trouble you with fittings and wirings. These are safe and as per the current standards. In comparison, an older home might have decaying fixtures which would require replacement.
With new homes you also have the flexibility to guide the design and incorporate conveniences you need during the building stage. Also, a lot has changed in construction after the 80s. Earlier, children were accustomed to sharing a room. Bathrooms and kitchens used to be smaller.
New homes are designed according to the standards and wants of today. You will get bigger rooms and more kitchen space.
Bathrooms are also designed bigger to accommodate more luxuries. For instance, there are many new homes that come with inbuilt air purification to protect owners from asthma and allergies.
Reason 6: Renovation and Remodeling Old Homes
A major problem in older homes is renovating to match the older materials. It may be nearly impossible to acquire new materials that match the older ones. You may have to replace a larger area than required which can be an unnecessary expense.
It is very easy to romanticize about an older home and forget all the work you will have to pitch in to get it in shape. You would feel a new home to be the better option by the time you are done paying for the materials and labor.
Renovation is also done best when a house is vacant. You will have to factor in other expenses related to staying in your existing home or in moving temporarily to a hotel. Construction zones can easily disrupt your life and make it very difficult to complete day to day tasks.
Reason 7: New Homes are More Energy Efficiency
New homes are practically the better option when considering energy efficiency and being environment friendly.
There are tougher national code standards followed by newer constructions that can bring down your energy bills. In fact, these homes come with energy certifications that cover doors, windows, walls, roofs, and even appliance packages.
In older constructions, energy efficiency was an afterthought. You might not find a resale home with energy certification.
On top of this, resale homes were built to match lower standards as compared to the ones in existence today. Bringing an old home to the level of the same energy efficiency found in newer homes might cost you more than you bargained for.